ACC00724 - Entity’s Financial Statements - Statement of Financial Position - Accounting Assignment Help

Assignment Task :

QUESTION 1 (ACC00724)
Top Cakeshop was established on 1 April 2019 with an initial investment of $100,000 by the owner (Jack Claff). During the first few weeks of business, the owner employed a part-time book-keeper who recorded the following list of accounts:
Accounts payable $37,100
Buildings 100,000
Cash at bank 31,000
Furniture 12,000
Jack Claff – Capital 150,000
Baking Supplies 5,600
Loan payable 20,700
Accounts receivable 20,000
Land 43,200
Mortgage payable 40,000
Cash drawings by Jack Claff 36,000

Required:
a. Assuming that the amounts above are correct, prepare a statement of financial position in the vertical format illustrated on page 56, Example 2.3.
b. Prepare a statement of changes in equity for the period and determine the amount of profit (loss) made by the business during the period of its first few weeks of existence, assuming that the owner had invested an additional $20,000 into the business just before the above amounts were calculated by the book-keeper. 
c. Why is it that, in an entity’s financial statements, assets leased by an entity are sometimes shown on that entity’s balance sheet even though those assets are not legally owned? Explain. You should disclose the source of your information by referencing and support your statements by research and readings.

QUESTION 2 
The following transactions were undertaken by ABC Pty Ltd during the financial year ended 30 June 2019.
1. Sold for $12,000 used machinery with a carrying amount of $75,000.
2. Issued ordinary shares for cash, $300,000.
3. Purchased land to be held for future expansion for $220,000.
4. Paid off a long-term $90,000 loan plus interest of $8,000.
5. Purchased machinery, giving $50,000 cash and signing a mortgage loan for $90,000.
6. Purchased shares in A Ltd to be held as an investment for $100,000 cash.
7. Sold a long-term government bond, with a carrying amount of $45,000, for $56,000, including $5,000 accrued interest.
8. Purchased shares in Rouge Ltd to be held as a long-term investment, paying $170,000 cash.
9. Issued 7% debentures for $500,000
10. Paid cash dividends of $60,000

Required:
a. Prepare the net cash flow used in investing activities section of the statement of cash flows. Must show your calculations
b. Prepare the net cash flow used in financing activities section on the statement of cash flows. Must show your calculations
c. What are the limitations of a statement of cash flows? Explain. You must disclose the source of your information by referencing and support your statements through readings and research.

This ACC00724 - Accounting Assignment has been solved by our Accounting Experts at My Uni Paper. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our experts are well trained to follow all marking rubrics & referencing style.

Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.